Financial Analysis

The Company's revenues by segment and primary payor source were as follows: Year ended December 31, 2025 U.S. dialysis Other - Ancillary services Consolidated Patient service revenues: Medicare and Medicare Advantage $ 6,740,392 $ $ 6,740,392 Medicaid and Managed Medicaid 871,695 871,695 Other government 349,651 914,387 1,264,038 Commercial 3,806,596 385,423 4,192,019 Other revenues: Medicare and Medicare Advantage 507,613 507,613 Medicaid and Managed Medicaid 2 2 Commercial 15,399 15,399 Other (1) 24,610 99,462 124,072 Eliminations of intersegment revenues (60,958) (11,203) (72,161) Total $ 11,731,986 $ 1,911,083 $ 13,643,069 Year ended December 31, 2024 U.S. dialysis Other - Ancillary services Consolidated Patient service revenues: Medicare and Medicare Advantage $ 6,374,882 $ $ 6,374,882 Medicaid and Managed Medicaid 863,947 863,947 Other government 343,705 717,735 1,061,440 Commercial 3,783,827 248,026 4,031,853 Other revenues: Medicare and Medicare Advantage 463,731 463,731 Medicaid and Managed Medicaid 740 740 Commercial 21,396 21,396 Other (1) 24,356 58,862 83,218 Eliminations of intersegment revenues (71,747) (13,910) (85,657) Total $ 11,318,970 $ 1,496,580 $ 12,815,550 Year ended December 31, 2023 U.S. dialysis Other - Ancillary services Consolidated Patient service revenues: Medicare and Medicare Advantage $ 6,100,183 $ $ 6,100,183 Medicaid and Managed Medicaid 833,744 833,744 Other government 354,304 500,137 854,441 Commercial 3,623,516 251,279 3,874,795 Other reve …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Fair values of financial instruments The Company measures the fair value of certain assets, liabilities, and noncontrolling interests subject to put provisions (redeemable equity interests classified as temporary equity) based upon certain valuation techniques that include observable or unobservable inputs and assumptions that market participants would use in pricing these assets, liabilities, temporary equity and commitments. The Company has also classified assets, liabilities and temporary equity that are measured at fair value on a recurring basis into the appropriate fair value hierarchy levels as defined by the FASB. The following table summarizes the Companys assets, liabilities and temporary equity measured at fair value on a recurring basis as of December 31, 2025 and 2024: December 31, 2025 Total Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets Investments in equity securities $ 40,949 $ 40,949 Interest rate cap agreements $ 11,593 $ 11,593 Liabilities Contingent earn-out obligations for acquisitions $ 9,495 $ 9,495 Temporary equity Noncontrolling interests subject to put provisions $ 1,532,166 $ 1,532,166 December 31, 2024 Assets Investments in equity securities $ 40,566 $ 40,566 Interest rate cap agreements $ 30,062 $ 30,062 Liabilities Contingent earn-out obligations for acquisitions $ 13,542 $ 13,542 Temporary equity Noncontrolling interests subject to put …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Income before income taxes from continuing operations consisted of the following: Year ended December 31, 2025 2024 2023 Domestic $ 1,224,860 $ 1,374,571 $ 1,100,420 International 121,963 155,822 76,674 $ 1,346,823 $ 1,530,393 $ 1,177,094 Income tax expense for continuing operations consisted of the following: Year ended December 31, 2025 2024 2023 Current: Federal $ 134,287 $ 253,504 $ 200,070 State 26,913 52,410 38,370 International 45,338 31,532 21,008 Total current income tax 206,538 337,446 259,448 Deferred: Federal 76,506 (47,715) (40,234) State 11,225 (2,855) 367 International (1,162) (7,220) 535 Total deferred income tax 86,569 (57,790) (39,332) $ 293,107 $ 279,656 $ 220,116 Income taxes are allocated between continuing and discontinued operations as follows: Year ended December 31, 2025 2024 2023 Continuing operations $ 293,107 $ 279,656 $ 220,116 Discontinued operations $ 293,107 $ 279,656 $ 220,116 The reconciliation between the …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Long-term debt Long-term debt comprised the following: December 31, As of December 31, 2025 2025 2024 Maturity date Interest rate Estimated fair value (1) Senior Secured Credit Facilities: Term Loan A-1 (2) $ $ 2,259,295 4/28/2028 $ Term Loan A-2 (3) 2,000,000 11/24/2030 SOFR + 1.50% $ 1,995,000 Term Loan B-1 (4) 1,636,150 5/9/2031 $ Term Loan B-2 1,868,559 5/9/2031 SOFR + 1.75% $ 1,877,902 Revolving line of credit (2,3) 11/24/2030 SOFR + 1.50% $ Senior Notes: 4.625% Senior Notes 2,750,000 2,750,000 6/1/2030 4.625 % $ 2,667,500 3.75% Senior Notes 1,500,000 1,500,000 2/15/2031 3.75 % $ 1,383,750 6.875% Senior Notes 1,000,000 1,000,000 9/1/2032 6.875 % $ 1,036,250 6.75% Senior Notes 1,000,000 7/15/2033 6.75 % $ 1,035,000 Acquisition obligations and other notes payable (5) 40,904 56,483 2026-2038 4.89 % $ 40,904 Financing lease obligations (6) 185,120 216,401 2026-2039 4.44 % CHC temporary funding assistance 92,777 % $ Total debt principal outstanding 10,344,583 9,511,106 Discount, premium and deferred financing costs (7) (71,394) (64,336) 10,273,189 9,446,770 Less current portion (109,201) (270,867) $ 10,163,988 $ 9,175,903 (1) For the Company's senior secured credit facilities, fair value estimates are based on bid and ask quotes, a level 2 input. For the Company's senior notes, fair value estimates are based on market level 1 inputs. For acquisition obligations and other notes payable, the carrying values presented here approximate their estimated fair values, based on estim …

LongTermDebtTextBlock · excerpt; the full note is in the filing

New accounting standards New standards recently adopted In December 2023, the Financial Accounting Standards Board issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which expands income tax disclosure requirements to include additional information related to the rate reconciliation of effective tax rates to statutory rates, as well as additional disaggregation of taxes paid in both U.S. and foreign jurisdictions. The amendments in this ASU also remove disclosure requirements related to certain unrecognized tax benefits and deferred taxes. ASU 2023-09 became effective for the Company for the fiscal year ended December 31, 2025. See Note 11 for further discussion of the Company's income taxes and the additional disclosure required by this ASU. New standards not yet adopted In November 2024, the Financial Accounting Standards Board issued ASU 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures, which requires disaggregated disclosure of income statement expenses, including purchases of inventory, employee compensation, depreciation, and amortization. The amendments in this ASU are effective for fiscal years beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. The amendments in this ASU may be applied prospectively or retrospectively, and early adoption is permitted. The Company is currently assessing the effect this guidance may have on its consolidated financ …

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Employee benefit plans The Company has a 401(k) retirement savings plan for substantially all of its U.S. employees which has been established pursuant to applicable provisions of the Internal Revenue Code (IRC). The plan allows for employees to contribute a percentage of their base annual salaries on a tax-deferred basis not to exceed IRC limitations. The Company maintains a 401(k) matching program under which the Company matches 50% of the employee's contribution up to 6% of the employee's salary, subject to certain limitations. The matching contributions are subject to certain eligibility and vesting conditions. For the years ended December 31, 2025, 2024 and 2023, the Company incurred expense for matching contributions totaling approximately $80,784, $79,006 and $73,725, respectively. The Company also maintains a voluntary compensation deferral plan, referred to as the Deferred Compensation Plan. The Deferred Compensation Plan is non-qualified and permits certain employees whose annualized base salary equals or exceeds a minimum annual threshold amount as set by the Company to elect to defer all or a portion of their annual bonus payment and up to 50% of their base salary into a deferral account maintained by the Company. Deferred amounts are generally paid out in cash at the participants election either in the first or second year following retirement or in a specified future period at least three to four years after the deferral election was effective. Participants are …

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"Revenue recognition and accounts receivable The Company's revenues by segment and primary payor source were as follows: Year ended December 31, 2025 U.S. dialysis Other - Ancillary services Consolidated Patient service revenues: Medicare and Medicare Advantage $ 6,740,392 $ $ 6,740,392 Medicaid and Managed Medicaid 871,695 871,695 Other government 349,651 914,387 1,264,038 Commercial 3,806,596 385,423 4,192,019 Other revenues: Medicare and Medicare Advantage 507,613 507,613 Medicaid and Managed Medicaid 2 2 Commercial 15,399 15,399 Other (1) 24,610 99,462 124,072 Eliminations of intersegment revenues (60,958) (11,203) (72,161) Total $ 11,731,986 $ 1,911,083 $ 13,643,069 Year ended December 31, 2024 U.S. dialysis Other - Ancillary services Consolidated Patient service revenues: Medicare and Medicare Advantage $ 6,374,882 $ $ 6,374,882 Medicaid and Managed Medicaid 863,947 863,947 Other government 343,705 717,735 1,061,440 Commercial 3,783,827 248,026 4,031,853 Other revenues: Medicare and Medicare Advantage 463,731 463,731 Medicaid and Managed Medicaid 740 740 Commercial 21,396 21,396 Other (1) 24,356 58,862 83,218 Eliminations of intersegment revenues (71,747) (13,910) (85,657) Total $ 11,318,970 $ 1,496,580 $ 12,815,550 Year ended December 31, 2023 U.S. dialysis Other - Ancillary services Consolidated Patient service revenues: Medicare and Medicare Advantage $ 6,100,183 $ $ 6,100,183 Medicaid and Managed Medicaid 833,744 833,744 Other government 354,304 500,137 854,441 Comm …

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"Segment reporting The Company's operating divisions are composed of its U.S. dialysis and related lab services business (its U.S. dialysis business), its U.S. integrated kidney care business, its U.S. other ancillary services and its international operations (collectively, its ancillary services), as well as its corporate administrative support functions. See Note 1 ""Organization"" for a summary description of the Company's businesses. The Companys operating segments have been defined based on the separate financial information that is regularly produced and reviewed by the Companys chief operating decision maker in making decisions about allocating resources to and assessing the financial performance of the Companys various operating lines of business. The chief operating decision maker for the Company is its Chief Executive Officer. The Companys separate operating segments include its U.S. dialysis and related lab services business, its U.S. integrated kidney care business, its U.S. other ancillary services, and its operations in each foreign sovereign jurisdiction. The U.S. dialysis and related lab services business qualifies as a separately reportable segment, and all other operating segments have been combined and disclosed in the other segments category. The Companys operating segment financial information included in this report is prepared on the internal management reporting basis that the chief operating decision maker uses to assess the financial performance of a …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Stock-based compensation Stock-based compensation consists primarily of stock-settled stock appreciation rights, restricted stock units and performance stock units. Stock-based compensation, which is primarily general and administrative in nature, is attributed to the Companys U.S. dialysis business, its corporate administrative support, and its ancillary services. See Note 1 ""Organization and summary of significant accounting policies"" for more information on how the Company measures and recognizes stock-based compensation expense. Long-term incentive compensation plans The DaVita Inc. 2020 Incentive Award Plan (the 2020 Plan) is the Companys current omnibus equity compensation plan and provides for grants of stock-based awards to employees, directors and other individuals providing services to the Company, except that incentive stock options may only be awarded to employees. The 2020 Plan provides for the grant of stock appreciation rights, nonqualified stock options, incentive stock options, restricted stock units, restricted stock, performance stock awards, dividend equivalents, stock payments, deferred stock unit awards, deferred stock awards and performance cash awards. The 2020 Plan mandates a maximum award term of 10 years for stock appreciation rights and stock options and stipulates that awards of these types be granted with a base or exercise price per share of not less than the fair market value of the Company's common stock on the date of grant. Shares availab …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing